Social Security and Retirement Planning Challenges in 2023

Matt Stevenson and Peter Lott of Allied Wealth discuss social security and retirement planning challenges that individuals who are facing in the midst of a potential recession.

Social security and retirement planning are two of the biggest questions investors have when building a retirement plan. There are many different claiming strategies for Social Security, and several variables should be considered to choose the right strategy for you, such as longevity, health, other retirement assets and resources, and one’s spouse.

Retirement plans such as a 401(k) are also discussed. If an individual leaves a former employer, or reaches the age of 59.5, they are often entitled to what is known as an in-service rollover of their 401(k) plan to an Individual Retirement Account. Often, 401(k) plans have limited investment choices available to employees. Utilizing an IRA potentially opens up more investment options to the individual to allow them to choose the right fit for their retirement plan needs.

Lastly, taxation in retirement is discussed as one of the biggest challenges that today’s investor and retiree must face. Pre-tax accounts, such as a Traditional 401(k), 403(b) or IRA, are subject to taxation when money is withdrawn from these accounts. Utilizing accounts such as a Roth IRA, which grow tax-deferred and can in many cases be used to generate tax-free income in retirement, can be a powerful tool to use in a written, comprehensive financial plan.

The recent recession has been a big concern for many people, especially those who are nearing retirement. With sky-high interest rates and inflation, it can feel like maintaining our lifestyle is getting more expensive every day. In times like this, it’s important to have a plan in place that takes into account your income, spending, and investments.

One crucial element of this plan is deciding when to claim your Social Security benefits. As financial advisor Matt Blade explains, there is no one-size-fits-all answer to this question. Each person’s situation is unique, and factors such as investment strategy and spouse’s benefits need to be considered.

Another key aspect of recession-proofing your retirement plan is ensuring that you have covered your non-discretionary expenses. These include essentials such as food, water, shelter, clothing, and transportation. Once these needs are met, you can focus on meeting your other goals, such as traveling and spending time with loved ones.

But how can you have confidence to spend throughout your golden years when the economy is uncertain? Having a financial flight plan can provide that confidence. This written strategy takes into account variables such as inflation and market fluctuations, helping you to make informed decisions about your finances.

In conclusion, while a recession can be a daunting prospect, there are steps you can take to prepare yourself as best as possible. By developing a plan that takes into account your unique situation and having the confidence to stick to it, you can recession-proof your retirement and enjoy your golden years to the fullest.

Don’t miss the full video about social security and retirement planning challenges!

Also read: How To Choose A Financial Advisor In 2023


Our Channel “ ON THE MONEY“, is powered by Allied Wealth, Houston’s premier wealth management and financial planning firm. On the Money brings viewers educational, topic-driven, and real-life financial scenarios every week.

Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.

Allied Wealth is fully dedicated to your financial future, financial security and retirement.

With Allied Wealth, you will spend less time worrying and more time enjoying the life you’ve earned